MNI China Press Digest, Aug 15: China-U.S., Economy, T-bonds

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Thursday:

     The U.S. threat to hike tariffs and its accusations that China is a

"currency manipulator" are without basis but have intensified global market

turmoil, People's Daily reported. Citing a number of experts, the People's Daily

report said China should focus on promoting reform and market opening in its

pursuit of high-quality economic development.

     China should increase counter-cyclical financial adjustments in the

following months, China Securities Journal reported. Citing Liu Xuezhi, a senior

researcher at the Financial Research Center of the Bank of Communications, the

Journal report said that while tax and fee cuts continued, fiscal pressure

should also be eased through collecting profits from local state-owned

enterprises. Monetary policy should be marginally relaxed along with targeted

cuts to the reserve requirement ratio, Liu said.

     The massive and rapid issuance of U.S. Treasury bonds cannot solve the

fundamental problems of the U.S. economy which is based on unsustainable levels

of debt, Economic Information Daily said in a front-page commentary. There was

less demand for T-bonds due to the lack of investment confidence overseas, the

commentary said. When the creditor country sells T-bonds to avoid risks this

would put greater pressure on bond issuance, the newspaper said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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